Penn State Scandal: Moody's Warns Of Possible Credit Downgrade For Troubled School

11/11/2011 05:36 pm ET
|
Updated
Jan 11, 2012

490

BOSTON - The child sex abuse scandal at Penn State University reached Wall Street Friday when the ratings agency Moody's warned of a possible credit downgrade for the prestigious university.

``Over the next several months, Moody's will evaluate the potential scope of reputational and financial risk arising from these events,'' Dennis Gephart, a senior analyst at Moody's, said in a release.

Penn State's debt is currently rated Aa1, reflecting very strong student demand and other credit strengths at Pennsylvania's flagship university.